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HII Reports 12% Q3 Revenue Hike; CEO Chris Kastner on Company’s Military Shipbuilding Work

HII (NYSE: HII) reported net earnings of $138 million, or $3.44 per diluted share, for the third quarter of its 2022 fiscal year and registered a 12.3 percent growth in sales year-over-year to $2.6 billion.

The military shipbuilder said Thursday that  its Newport News Shipbuilding business and sales generated through its acquisition of Alion Science and Technology drove the 

HII recorded approximately $2.1 billion in Q3 new contract awards and ended the quarter with a total backlog of about $46.7 billion.

Sales of the company’s Newport News Shipbuilding segment reached $1.4 billion during the quarter, up 6.7 percent from the prior-year period driven by revenue increase in naval nuclear support services, aircraft carriers and submarines.

The Ingalls Shipbuilding segment recorded $623 million in Q3 sales, down $5 million from the same period in 2021.

Third-quarter revenue of HII Mission Technologies rose 51 percent to $595 million due to higher volume of work in defense and federal solutions areas related to the Alion purchase.

Notwithstanding a continued challenging economic environment, we remain focused on consistent shipbuilding program execution and capturing contract awards at our Mission Technologies division,” said Chris Kastner, president and CEO of HII.

We are confident in the positioning of the business for long-term value creation given the tremendous volume of shipbuilding work we have secured in backlog and a Mission Technologies division that is poised for growth in markets of critical importance to our customers,” he added.

At HII’s earnings call Thursday, Kastner offered updates on HII’s progress with its shipbuilding programs, including the USS Lyndon B. Johnson DDG-1002 Zumwalt-class destroyer and USS John F. Kennedy CVN-79 Gerald R. Ford-class aircraft carrier.

We have commenced the work to complete the combat system, installation and activation on the Zumwalt-class destroyer, Lyndon B. Johnson, DDG 1002. At Newport News, CVN 79 Kennedy is moving further into the test program and began testing of the electromagnetic launch system,” he told analysts.

He said the company is on schedule to deliver five ships in 2023.

According to Kastner, the company expects to hand over two Virginia-class submarines – USS Massachusetts SSN-798 and USS New Jersey SSN-796 – and redeliver the USS George Washington (CVN-73) Nimitz-class aircraft carrier to the U.S. Navy in 2023.

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